Cole Phelps

This is wild. SpaceX now has the right to BUY Cursor for $60B. Or pay them $10 billion to walk away. To put it in perspective, Cursor was worth $9.9 billion total in May of last year. Let's have a closer look at the numbers. Start with the $60 billion. Cursor was already raising money this week at a $52 billion valuation from a16z and Nvidia. The Elon offer sits 15% above a number that was already on the table. The next round priced in, with a one-year fuse. The $10 billion is the real number. That's what SpaceX pays even if it walks away and never buys the company. The walk-away fee alone is more than the entire company was worth 12 months ago. Now the strategic logic. Cursor stopped being just an editor in March. They shipped Composer 2, their own model, and it beat Claude Opus 4.6 on Terminal-Bench at one-tenth the price. The catch is that frontier coding models need frontier compute, and the only labs with frontier compute are the same ones building competing coding products. OpenAI shipped Codex. Anthropic shipped Claude Code. Google has Gemini CLI. Cursor was renting capacity from every company trying to kill it. Colossus is the way out. 230,000 GPUs in Memphis today, 1 million by year end, the biggest training cluster on Earth. The Information already reported Cursor is renting tens of thousands of those chips to train Composer 3. SpaceX is also building Grok Code, so they're not a clean partner. But xAI losing the coding race to Cursor is a better outcome for SpaceX than Cursor losing the coding race to OpenAI. The trade Cursor made: gave up the right to be acquired by anyone else for one year. Got training compute at a scale no other lab would sell them. Got $10 billion guaranteed if Elon walks. OpenAI tried to buy Cursor in early 2025 and got rejected. Cursor stays independent for at least 12 more months and gets to train on the biggest cluster on earth doing it. Elon just bought a one-year call option on Cursor for $10 billion. That's the deal.

Today in 2008, Tesla began the regular production on its first car, the Tesla Roadster. Also, a reminder that there's one Tesla Roadster in an elliptical heliocentric orbit crossing the orbit of Mars.

this is actually insane > be tech guy in australia > adopt cancer riddled rescue dog, months to live > not_going_to_give_you_up.mp4 > pay $3,000 to sequence her tumor DNA > feed it to ChatGPT and AlphaFold > zero background in biology > identify mutated proteins, match them to drug targets > design a custom mRNA cancer vaccine from scratch > genomics professor is “gobsmacked” that some puppy lover did this on his own > need ethics approval to administer it > red tape takes longer than designing the vaccine > 3 months, finally approved > drive 10 hours to get rosie her first injection > tumor halves > coat gets glossy again > dog is alive and happy > professor: “if we can do this for a dog, why aren’t we rolling this out to humans?” one man with a chatbot, and $3,000 just outperformed the entire pharmaceutical discovery pipeline. we are going to cure so many diseases. I dont think people realize how good things are going to get

Both xAI and Meta seem to be falling behind, based on the Grok 4.2 benchmarks and this reporting. Frontier AI models are really a three way race at this point.